The effects of electricity tariffs on cost-minimal hydrogen supply chains and their impact on electricity prices and redispatch costs

Date
2021-01-05
Authors
Vom Scheidt, Frederik
Qu, Jingyi
Staudt, Philipp
Mallapragada, Dharik
Weinhardt, Christof
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Abstract
Hydrogen fueled transportation can contribute substantially to the reduction of global carbon emissions. However, the production of hydrogen through electrolysis creates interdependencies with electricity systems. Therefore, we present a new model which couples the hydrogen supply chain with the electricity system. We use this model to analyse a case study of Germany in 2030. We find that if efficient spatially resolved electricity tariffs are applied instead of existing uniform tariffs, electrolyzers are placed primarily at low-cost nodes and farther away from consumption centers. For hydrogen, this leads to higher transportation costs, but lower production costs, and lower total costs. Moreover, costs for congestion management decrease substantially.
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Policy, Markets and Analytics, electricity tariffs, hydrogen supply chain, nodal pricing, redispatch, sector coupling
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